City Victim of Embezzlement

A discussion during a Watonga City Council meeting revealed some city funds had gone missing from the light and water department. The discussion was part of an audit report from FSW&B CPA for the fiscal year 2018-19.

According to Watonga Police Chief Shawn Kays, officer Brian Johnson took the report in November 2019 that $9,447.23 had gone missing between March and June. The method by which the money disappeared was the end-of-day tally of the cash drawers was deposited into the bank. However, the deposit slip and the amount of money in the deposit did not match. This occurred five times to total the $9,447. The situation was discovered, the auditor said, by internal controls and that allowed the firm to give the city a clean finding on its audit. The auditor claimed the misappropriation was not caught immediately because of changes in personnel at the office, but it was an exception rather than being widespread throughout the organization.

“It means what was entered into the system and the figures that got to the CPA from the bank did not match,” Kays said.

The former city director of finance was asked to come in to discuss the case, but she had left her job with the city by then and declined the interview.

A person of interest was identified and questioned about the situation, but she denied any involvement and sought legal counsel. Meanwhile, Johnson consulted the Oklahoma State Bureau of Investigation. With input from the OSBI, he sent charges to the Blaine County District Attorney’s office in January, asking it to hand down five counts of embezzlement.

That office, however declined to file charges. The DA decides if prosecution of a case is an option.

Changes have been implemented in the city offices to close the crack through which the money disappeared. Duties have been segregated further. For instance, one employee might collect and post receipts while another one makes the deposits. Daily cash sheets note how much was taken in and are signed by employees. The office of the city manager also adds oversight and identifies areas of risk. The city’s accountant helps mitigate or eliminate the risks.

Connie Burcham can be reached at Editor@WatongaRepublican.com